Foreign Worker Levy All employers in Singapore are required to pay Foreign Worker Levy to MOM every month for every Work Permit and S Pass holder. The rates vary from SGD 250 per month (Manufacturing, Higher-Skilled Tier 1) to SGD 950 per month (Construction, Basic-Skilled without MYE) in 2026. The cost depends on your sector, your worker’s skill tier and how close you are to your Dependency Ratio Ceiling (DRC). Services and Manufacturing have different tiered rates than Construction & Marine.
What Is the Foreign Worker Levy?
The Singapore government controls the number of foreign workers that employers can hire by using a pricing mechanism called the Foreign Worker Levy (FWL). It is a compulsory monthly fee – not optional, not waivable – levied on every Work Permit holder and S Pass holder on your payroll, from the day their pass is issued until it is cancelled or expires.
The levy is NOT a penalty or tax on bad behaviour. It is a tool used by the government to encourage companies to hire local workers first, and to improve the skill levels of their foreign workers over time. There is a direct financial incentive for employers paying a lower levy for hiring higher-skilled (R1) workers than basic-skilled (R2) workers to invest in worker upskilling.
Employment Pass (E Pass) holders are completely exempted from the levy. MOM bills and collects the monthly levy charges directly from only Work Permit and S Pass holders. If you’re still planning your hiring process from scratch, check out our complete guide on how to hire foreign workers in Singapore for the full step-by-step process.”
How Much Is the Foreign Worker Levy in 2026?
2026 Foreign worker levy rates (per worker per month) are from SGD 250 to SGD 950 depending on your industry sector and the skill classification of the worker. The S Pass levy will be consolidated into a single rate of SGD 650 per month for all sectors, with the existing two-tier structure removed from 1 September 2025.
S Pass Levy (All Sectors — unified from September 2025):
| Pass Type | Monthly Levy |
| S Pass (all sectors) | SGD 650 flat |
Construction Sector:
| Worker Skill Level | With MYE | Without MYE |
| Higher-Skilled (R1) | SGD 300 | SGD 600 |
| Basic-Skilled (R2) | SGD 700 | SGD 950 |
Manufacturing Sector:
| DRC Utilisation Tier | Higher-Skilled (R1) | Basic-Skilled (R2) |
| Tier 1 (up to 25%) | SGD 250 | SGD 370 |
| Tier 2 (25%–50%) | SGD 350 | SGD 470 |
| Tier 3 (50%–60%) | SGD 550 | SGD 650 |
Marine Shipyard Sector:
| Worker Skill Level | Current Monthly Rate |
| Higher-Skilled (R1) | SGD 300 |
| Basic-Skilled (R2) | SGD 500 |
Process Sector:
| Worker Skill Level | Current Monthly Rate |
| Higher-Skilled (R1) | SGD 300 |
| Basic-Skilled (R2) | SGD 450 |
All rates above are verified against MOM’s levy rates page as of May 2026. Always confirm current rates at mom.gov.sg before workforce planning.
How Does the Levy Differ by Sector?
The levy framework is not a one-size-fits-all approach – MOM calibrates the rates based on the sector’s dependence on foreign labour and national priorities for the workforce.
Construction
Construction has the highest basic-skilled levy rates in Singapore (up to SGD 950/month for R2 non-MYE workers) as it has historically been the largest employer of Work Permit holders. However, construction employers who have Man-Year Entitlements (MYE) pay a much reduced rate – making MYE allocation a precious resource with a direct bearing on the competitiveness of project bids.
Manufacturing
Manufacturing has a three-tier DRC structure that raises the levy rate as you bring in more foreign workers compared to your total headcount. A Tier 1 company (up to 25% foreign workforce) pays SGD 250 per month for an R1 worker, while if the company is at Tier 3 (50%-60% DRC utilisation), the same worker costs SGD 550 per month. The tiered design makes it costly to over-rely on foreign manpower.
Marine Shipyard and Process
Budget 2026 announcements indicate phased-in levy increases for sectors through 2026–2028. MOM is pushing both sectors to move towards higher-skilled composition of the workforce with the Marine R2 rate to go up by SGD 100 and the Process R2 rate by SGD 150.
Services
Employers pay a 35% DRC – one of the highest in any sector – and a separate levy schedule that reflects the government’s heightened focus on hiring locals for front-facing service positions.
What Are Levy Tiers and How Are They Calculated?
Levy tiers depend on how much of your allowable foreign worker quota you have used against your Dependency Ratio Ceiling (DRC). The DRC restricts the number of foreign workers you can hire as a share of your total workforce.
Here’s how it works in practice for a Manufacturing employer:
- You have 40 employees in your company (local and foreign)
- DRC of manufacturing is 60% so you can hire maximum of 24 foreign workers
- Workers 1 to 10 (up to 25% of total headcount) are Tier 1 Levy
- Tier 2 levy – Workers 11 to 20 (25% to 50% of total headcount)
- Workers 21 to 24 (50% to 60% of total headcount) are Tier 3 levy
So your 24th foreign worker costs way more in monthly levy than your 10th – even if they are in the same skill classification. Good workforce planning is knowing what tier your new hire is in before you bring them on board.
Worked Example — Construction Firm:
A construction firm with MYE, employing 10 Basic-Skilled (R2) Work Permit holders from Bangladesh pays SGD 700 per worker per month. Total monthly bill for levy SGD 7,000. Without MYE for the same 10 workers, it would cost SGD 9,500 per month, a difference of SGD 30,000 per year for the same headcount.
When and How Do I Pay the Levy?
MOM bills the foreign worker levy on a monthly basis and you are required to pay on time every month. There is no grace period to protect you from penalties once the bill is due.
Payment deadlines and methods:
- MOM issues levy bills on the fourteenth of each month
- Payment is due on the last day of the month
- Late payment of a levy can attract a penalty of up to 30% of the outstanding levy amount
- If you repeatedly fail to pay your foreign workers, your work pass may be cancelled and you may be barred from hiring foreign workers in future.
How to pay:
- GIRO — The preferred method; MOM auto-debits on due date and eliminates risk of missed payments
- AXS machines – Available at major MRT stations and shopping malls
- Internet banking – The MOM billing reference number through leading Singaporean banks
- SingPost – available at selected Post Offices
Employers with three or more foreign workers are strongly encouraged to set up GIRO for levy payment. One missed levy in a month, due to manual oversight, can result in a penalty that wipes out months of savings from prudent workforce planning.
Can the Levy Be Waived or Reduced?
Under normal employment conditions, the foreign worker levy cannot be waived, but MOM has granted a levy waiver in two specific circumstances:
1. Hospitalisation
If a Work Permit holder is hospitalised continuously, the employer may apply for a waiver of levy for the period of hospitalisation. The worker must be an inpatient. Outpatient visits do not qualify. You are required to submit the waiver application through Work Permit Online (WPOL) portal on MOM within the stipulated window.
2. Overseas Leave
Employers can apply for a levy waiver to cover a Work Permit holder on overseas leave for a continuous period of at least 7 days. Max 60 days waiver per worker per year.
In all other circumstances the levy is collected whether or not a worker is on site, in training or on approved rest days. Levy waivers are not automatic, you need to actively apply for them through WPOL, with supporting documentation.
Key Takeaways:
Knowing your levy obligations is a must – it’s part and parcel of running a compliant and cost-effective business in Singapore that employs foreign workers.
- Levy applies to all Work Permit and S Pass holders — Employment Pass holders are totally exempt.
- Rates range from SGD 250 to SGD 950 per month depending on sector, skill tier and DRC utilisation.
- S Pass levy is now a flat SGD 650/month across all sectors since September 2025.
- Construction MYE holders pay significantly less — SGD 700 vs SGD 950 for R2 workers without MYE.
- Marine and Process sector rates are increasing through 2026–2028 per Budget 2026 policy.
- Set up GIRO immediately — late payment penalties of up to 30% compound quickly with large foreign workforces.
- Waiver is available for hospitalisation and overseas leave only — apply proactively through WPOL.
MOM reviews levy rates every year. The rates in this article have been cross-checked with MOM’s portal as at May 2026. Always check mom.gov.sg for the latest confirmed rates before finalising your workforce budget.
Need Help Managing Your Foreign Worker Levy and Quota?
114 Solutions is a foreign worker agency in Singapore licensed by MOM. Our team helps employers in the construction, marine, process and manufacturing industries plan their foreign workforce within MOM’s DRC and levy framework – so you hire the right number of workers, at the right skill tier, and avoid unnecessary levy overspend.
Talk to our team today: Visit our Employers page or call +65 8112 8544.
